G. Willi-Food Reports Q2 2013 Net Profit Up 90% From Q2 2012

         G. Willi-Food Reports Q2 2013 Net Profit Up 90% From Q2 2012

2013 Q2 Sales up 27% over 2012 Q2 Sales; 2013 Q2 Operating Income up 50% over
Q2 2012 Operating Income

PR Newswire

YAVNE, Israel, Aug. 6, 2013

YAVNE, Israel, Aug. 6, 2013 /PRNewswire/ --G. Willi-Food International Ltd.
(NASDAQ: WILC) (the "Company" or "Willi-Food"), a global company that
specializes in the development, marketing and international distribution of
kosher foods, today announced its unaudited financial results for the second
quarter and the six-months ended June 30, 2013.

Second Quarter Fiscal 2013 Highlights (income statement highlights compared to
same period last year)

  oSales increased 27.3% to NIS 84.4 million (US$ 23.3 million);
  oGross profit increased 32.0% to NIS 21.8 million (US$ 6.0 million), or
    25.9% of sales;
  oOperating income increased 49.7% to NIS 8.3 million (US$ 2.3 million), or
    9.8% of sales;
  oNet income nearly doubled to NIS 7.8 million (US$ 2.2 million), or 9.2% of
    sales;
  oEarning per share nearly doubled to NIS 0.60 (US$ 0.17);
  oNet cash from operating activities of NIS 12.2 million (US$ 3.4 million);
    and
  oCash and securities balance of NIS 209.1 million (US$ 57.8 million) as of
    June 30, 2013.

Willi-Food's operating divisions include Willi-Food, a distributor of a broad
variety of kosher foods, and its wholly-owned subsidiary Gold Frost, a
designer, developer and distributor of branded kosher innovative dairy food
products.

Second Quarter Fiscal 2013 Summary

Sales for the second quarter of 2013 increased 27.3% to NIS 84.4 million (US$
23.3 million) compared to NIS 66.3 million (US$ 18.3 million) recorded in the
second quarter of 2012. This increase was a result of growing demand from
domestic and international customers, for quality kosher products. In Israel
specifically, we continued to benefit from a shift in consumer behavior by
cost conscious consumers who recognize our products as a viable alternative to
the higher cost leading brands.

Gross profit for the second quarter of 2013 increased by 32.0% to NIS 21.8
million (US$ 6.0 million) compared to NIS 16.5 million (US$ 4.6 million)
recorded in the second quarter of 2012. Second quarter gross margin was 25.9%
compared to gross margin of 24.9% for the same period in 2012. The gross
margin improvement was the result of a favorable revenue product mix during
the quarter.

Willi-Food's operating income for the second quarter of 2013 increased by
49.7% to NIS 8.3 million (US$ 2.3 million) compared to NIS 5.5 million (US$
1.5 million) recorded in the second quarter of 2012. Selling expenses
increased by 28.1% from the comparable quarter of 2012, primarily due to an
increase in promotion expenses as well as vehicles and transport expenses,
which increased due to the incremental increase in sales. Selling expenses as
a percentage of sales increased in the second quarter of 2013 to 10.6%
compared to 10.5% in the second quarter of 2012. General and administrative
expenses increased by 15.9% from the second quarter of 2012, primarily due to
an increase in management profit-related bonuses. General and administrative
expenses as a percentage of sales decreased in the second quarter of 2013 to
5.5% from 6.0% in the second quarter of 2012.

Willi-Food's income before taxes for the second quarter of 2013 increased by
91.6% to NIS 10.4 million (US$ 2.9 million) compared to NIS 5.4 million (US$
1.5 million) recorded in the second quarter of 2012.

Willi-Food's net income in the second quarter of 2013 increased by 90.1% to
NIS 7.8 million (US$ 2.2 million), or NIS 0.60 (US$ 0.17) per share, from NIS
4.1 million (US$ 1.1 million), or NIS 0.32 (US$ 0.09) per share, recorded in
the second quarter of 2012.

Willi-Food ended the second quarter of 2013 with NIS 209.1 million (US$ 57.8
million) in cash and securities net from short-term debt. Net cash from
operating activities for 2013 second quarter was NIS 12.2 million (US$ 3.4
million). Willi-Food's shareholders' equity at the end of June 2013 was NIS
349.9 million (US$ 96.7 million).

First Half Fiscal 2013 Highlights (compared to same period last year)

  oSales increased 25.0% to NIS 175.0 million (US$ 48.4 million);
  oGross profit increased 34.2% to NIS 43.2 million (US$ 11.9 million), or
    24.7% of sales;
  oOperating income increased 70.2% to NIS 17.5 million (US$ 4.8 million), or
    10.0% of sales;
  oNet income increased 79.7% to NIS 16.0 million (US$ 4.4 million), or 9.2%
    of sales; and
  oEarning per share of NIS 1.24 (US$ 0.34).

Six-Month Results

Willi-Food's sales for the six-month period ending June 30, 2013 increased by
25.0% to NIS 175.0 million (US$ 48.4 million) compared to sales of NIS 140.0
million (US$ 38.7 million) in the first half of 2012. Gross profit for the
period increased by 34.2% to NIS 43.2 million (US$ 11.9 million) compared to
gross profit of NIS 32.2 million (US$ 8.9 million) for the first half of 2012.
First half gross margins in 2013 were 24.7% compared to gross margins of 23.0%
in the same period of 2012.

Operating income for the first half of 2013 increased by 70.2% to NIS 17.5
million (US$ 4.8 million) from NIS 10.3 million (US$ 2.8 million) reported in
the comparable period of last year. First half 2013 income before taxes
increased by 77.9% to NIS 21.3 million (US$ 5.9 million) compared to NIS 12.0
million (US$ 3.3 million) recorded in the first half of 2012. Net income for
the first half of 2013 increased by 79.7% to NIS 16.0 million (US$ 4.4
million), or NIS 1.24 (US$ 0.34) per share, from NIS 8.9 million (US$ 2.5
million), or NIS 0.69 (US$ 0.19) per share, recorded in the first half of
2012.

Business Outlook

Mr. Zwi Williger, Chairman of Willi-Food commented, "We are very pleased to
report another strong quarter with organic sales growth of 27 percent and net
income growth of 90 percent as our customer base continues to expand and
market demand for our products continues to increase. Following the national
protests in 2011 against the rising prices of food products, our customer base
and the demand for our products increased due to the fact that customers
realized that they can obtain food products from us, in the same or better
quality than those of the leading brands in the market, at more affordable
prices. Our financial results have significantly improved over the last four
quarters as a direct result of our strategy to organically grow our customer
base and product line. Moving forward, we intend to continue to leverage
market demand in order to maximize our revenues and expand margins. We intend
to reinvest in the development of the company in order to maximize
profitability and increase long-term value for our shareholders."

Conference Call

The Company will host a conference call and live webcast the same day to
discuss the financial results beginning at 11:00 AM Eastern Time. Interested
parties may participate on the call by dialing 1-877-941-8416 (US), or
1-480-629-9808 (International), approximately 10 minutes prior to the
scheduled start time. Participants may also access a live listen only webcast
at http://public.viavid.com/index.php?id=105415

Following the conclusion of the call, atelephonic replay will be available
for 14 days beginning at 2:00 PM Eastern Time on August 6, 2013 through 11:59
PM Eastern Time on August 20, 2013 and may be accessed by dialing
1-877-870-5176 (US), or 1-858-384-5517 (International), using access code
4630851. In addition, an archived webcast will be available for one year at:
http://public.viavid.com/reports/eventparticipantreporttab.php?id=o5ano5ic

NOTE A: Convenience Translation to Dollars

The convenience translation of New Israeli Shekels (NIS) into U.S. dollars was
made at the rate of exchange prevailing on June 30, 2013, U.S. $1.00 equals
NIS 3.618. The translation was made solely for the convenience of the reader.

NOTE B: IFRS

The Company's consolidated financial results for the three-month and six-month
ended June 30, 2013 are presented in accordance with International Financial
Reporting Standards ("IFRS").

About G. Willi-Food International Ltd.

G. Willi-Food International Ltd. (http://www.willi-food.com) is an
Israeli-based company specializing in high-quality, great-tasting kosher food
products. Willi-Food is engaged directly and through its subsidiaries in the
design, import, marketing and distribution of over 600 food products
worldwide. As one of Israel's leading food importers, Willi-Food markets and
sells its food products to over 1,500 customers in Israel and around the world
including large retail and private supermarket chains, wholesalers and
institutional consumers. The company's operating divisions include Willi-Food
in Israel and Gold Frost, a wholly owned subsidiary who designs, develops and
distributes branded kosher, dairy-food products.

Forward Looking Statement

This press release contains forward-looking statements within the meaning of
safe harbor provisions of the Private Securities Litigation Reform Act of 1995
relating to future events or our future performance, such as statements
regarding trends, demand for our products and expected sales, operating
results, and earnings. Forward-looking statements involve known and unknown
risks, uncertainties and other factors that may cause our actual results,
levels of activity, performance or achievements to be materially different
from any future results, levels of activity, performance or achievements
expressed or implied in those forward-looking statements. These risks and
other factors include but are not limited to: monetary risks including changes
in marketable securities or changes in currency exchange rates- especially the
NIS/U.S. Dollar exchange rate, payment default by any of our major clients,
the loss of one of more of our key personnel, changes in laws and regulations,
including those relating to the food distribution industry, and inability to
meet and maintain regulatory qualifications and approvals for our products,
termination of arrangements with our suppliers, in particular Arla Foods, loss
of one or more of our principal clients, increase or decrease in global
purchase prices of food products, increasing levels of competition in Israel
and other markets in which we do business, changes in economic conditions in
Israel, including in particular economic conditions in the Company's core
markets, our inability to accurately predict consumption of our products and
changes in consumer preferences, our inability to protect our intellectual
property rights, our inability to successfully integrate our recent
acquisitions, insurance coverage not sufficient enough to cover losses of
product liability claims and risks associated with product liability claims.
We cannot guarantee future results, levels of activity, performance or
achievements. The matters discussed in this press release also involve risks
and uncertainties summarized under the heading "Risk Factors" in the Company's
Annual Report on Form 20-F for the year ended December 31, 2012, filed with
the Securities and Exchange Commission on April 30, 2013. These factors are
updated from time to time through the filing of reports and registration
statements with the Securities and Exchange Commission. We do not assume any
obligation to update the forward-looking information contained in this press
release.



{FINANCIAL TABLES TO FOLLOW}



G. WILLI-FOOD INTERNATIONAL LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
                                 June 30, December 31, June 30, December 31,
                                 2 0 1 3  2 0 1 2      2 0 1 3  2 0 1 2
                                 NIS                   US dollars (*)
                                 (in thousands)        (in thousands)
ASSETS
Current assets
Cash and cash equivalents        76,038   57,563       21,017          15,910
Financial assets carried at fair 133,065  158,810      36,779          43,894
value through profit or loss
Trade receivables                82,615   71,340       22,834          19,718
Other receivables and prepaid    3,459    5,988        956             1,655
expenses
Inventories                      43,841   49,270       12,117          13,618
Total current assets             339,018  342,971      93,703          94,795
Non-current assets
Property, plant and equipment    65,345   63,022       18,061          17,419
Less -Accumulated depreciation   23,040   21,394       6,368           5,913
                                 42,305   41,628       11,693          11,506
Other receivables and prepaid    475      62           131             17
expenses
Goodwill                         36       36           10              10
Deferred taxes                   -        20           -               6
Total non-current assets         42,816   41,746       11,834          11,539
                                 381,834  384,717      105,537         106,334
EQUITY AND LIABILITIES
Current liabilities
Short-term bank debt             -        9,930        -               2,745
Trade payables                   21,715   27,268       6,002           7,537
Employees Benefits               1,726    1,659        477             459
Accruals                         -        3,446        -               952
Current tax liabilities          2,364    2,117        653             585
Other payables and accrued       5,291    5,955        1,462           1,646
expenses
Total current liabilities        31,096   50,375       8,594           13,924
Non-current liabilities
Deferred taxes                   283      -            78              -
Employees Benefits               570      581          158             160
Total non-current liabilities    853      581          236             160
Shareholders' equity
Share capital NIS 0.10 par value
(authorized - 50,000,000 shares,
issued and outstanding -         1,444    1,444        399             399
12,974,245 shares at June 30,
2013; (12,974,245 shares at
December 31, 2012)
Additional paid in capital       129,903  129,897      35,905          35,903
Capital fund                     247      247          68              68
Remeasurement of defined benefit 11       -            3               -
obligation
Foreign currency translation     705      639          195             177
reserve
Treasury shares                  (10,843) (10,843)     (2,997)         (2,997)
Retained earnings                228,418  212,377      63,134          58,700
                                 349,885  333,761      96,707          92,250
                                 381,834  384,717      105,537         106,334
(*) Convenience translation
into U.S. dollars



G. WILLI-FOOD INTERNATIONAL LTD.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
               Six months        Three months              Six months
               ended June 30,    ended June 30,            ended June 30,
               2 0 1 3  2 0 1 2  2 0 1 3   2 0 1 2         2 0 1 3 2 0 1 2
               NIS                                         U.S. dollars (*)
               In thousands (except per share and share data)
Sales          174,999    139,984    84,414     66,333     48,369     38,691
Cost of sales  131,770    107,764    62,574     49,789     36,421     29,786
Gross profit   43,229     32,220     21,840     16,544     11,948     8,905
Selling        16,488     13,883     8,946      6,986      4,557      3,837
expenses
General and
administrative 9,290      8,109      4,622      3,989      2,568      2,241
expenses
Other income  (34)       (47)       (34)       19         (9)        (13)
Total
operating      25,744     21,945     13,534     10,994     7,116      6,065
expenses
Operating      17,485     10,275     8,306      5,550      4,832      2,840
income
Financial      4,587      1,734      1,948      (280)      1,268      479
income
Financial      801        55         (97)       (133)      221        15
expense
Income before
taxes on       21,271     11,954     10,351     5,403      5,879      3,304
income
Taxes on      5,230      3,027      2,560      1,304      1,446      837
income
Profit for the 16,041     8,927      7,791      4,099      4,433      2,467
period
Earnings per
share:


Earnings per
share


Basic earnings 1.24       0.69       0.60       0.32       0.34       0.19
per share
Diluted
earnings per   1.24       0.69       0.60       0.32       0.34       0.19
share
Shares used in
               12,974,245 12,980,550 12,974,245 12,974,245 12,974,245 12,980,550
computation of
basic EPS
(*) Convenience translation into
U.S. dollars



G. WILLI-FOOD INTERNATIONAL LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                            Six months        Three months    Six months
                            ended June 30,    ended June 30,  ended June 30,
                            2 0 1 3  2 0 1 2  2 0 13  2 0 1 2 2 0 1 3  2 0 12
                            NIS                               U.S. dollars (*)
                            (in thousands)
Cash flows - operating
activities
Profit from continuing      16,041   8,927    7,791   4,099   4,433    2,467
operations
Adjustments to reconcile
net income to net cash from (10,525) (15,192) 4,438   4,601   (2,907)  (4,200)
continuing operating
activities (Appendix)
Net cash from (used in)
continuing operating        5,516    (6,265)  12,229  8,700   1,526    (1,733)
activities
Net cash from discontinued  -        -        -       -       -        -
operating activities
Cash flows - investing
activities
Acquisition of property     (5,560)  (199)    (1,165) 82      (1,537)  (55)
plant and equipment
Proceeds from sale of
property plant and          29       42       29      42      8        12
Equipment
Additions to long term      (445)    -        (10)    -       (123)    -
other receivables
Proceeds from purchase of   28,865   31,767   5,321   24,128  7,978    8,780
marketable securities, net
Net cash from continuing    22,889   31,610   4,185   24,252  6,326    8,737
investing activities
Net cash from discontinued  -        13,500   -       -       -        3,731
investing activities
Cash flows - financing
activities
Investment in treasury      -        (702)    -       -       -        (192)
stocks
Short-term bank credit, net (9,930)  -        (19)    -       (2,745)  -
Net cash used in continuing (9,930)  (702)    (19)    -       (2,745)  (192)
financing activities
Net cash from discontinued  -        -        -       -       -        -
financing activities
Increase in cash and cash   18,475   38,143   16,395  32,952  5,107    10,543
equivalents
Cash and cash equivalents
at the beginning of the     57,563   34,661   59,643  39,852  15,910   9,580
financial year
Cash and cash equivalents
of the end of the financial 76,038   72,804   76,038  72,804  21,017   20,123
year
(*) Convenience Translation into U.S.
Dollars.





G. WILLI-FOOD INTERNATIONAL LTD.
APPENDIX TO CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Adjustments to reconcile net income to net cash from operating activities
                            Six months        Three months    Six months
                            ended june 30,    ended june 30,  Ended June 30,
                            2 0 1 3  2 0 1 2  2 0 1 3 2 0 1 2 2 0 1 3  2 0 1 2
                            NIS                               U.S. dollars (*)
                            (in thousands)
Deferred income taxes       303      (252)    528     (439)   84       (70)
Unrealized loss (gain) on   (3,120)  728      (1,551) 1,596   (862)    201
marketable securities
Depreciation and            2,166    1,971    1,155   1,098   599      545
amortization
Capital loss (gain) on
disposal of property  (29)     (60)     (29)    6       (8)      (17)
plant and equipment
Employees benefit, net      -        (89)     -       (212)   -        (25)
Stock based compensation    6        47       1       10      2        13
reserve
Changes in assets and
liabilities:
Decrease (increase) in
trade receivables and other (9,474)  (11,198) 91      5,916   (2,619)  (3,095)
receivables
Decrease (increase) in      5,429    (368)    (49)    1,152   1,502    (102)
inventories
Increase (decrease) in
trade and other payables,   (5,806)  (5,971)  4,292   (4,526) (1,605)  (1,650)
and other current
liabilities
                            (10,525) (15,192) 4,438   4,601   (2,907)  (4,200)
(*) Convenience Translation
into U.S. Dollars.



This information is intended to be reviewed in conjunction with the Company's
filings with the Securities and Exchange Commission.

Company Contact:
G. Willi Food International Ltd.
Raviv Segal, CFO
(+972) 8-932-1000
raviv@willi-food.co.il

SOURCE G. Willi-Food International Ltd.

Website: http://www.willi-food.com
 
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